Chapter Two : Literature Review 2.1 Introduction This chapter reviews about the literature to establish what have been studies by the previous researcher to discuss about the topic of the research in order to make it clearer with the current issues. It discusses about relationship between project management and project success to the triple objectives of Time, Cost and Quality that influencing project performance. There are two sections in this chapter, where Section A discusses about Triple Constraint in Project Management meanwhile Section B discusses about Project Success. 2.2 Section A: Triple Constraint in Project Management 2.2.1 Definition of Triple Constraint According to Kerzner (1989: 5th edition) claimed that “project management has been traditionally described as managing or controlling company resources on a given activity, within time, within cost and within performance”. These triple constraints define as the major factors that influencing to the project performance. Meanwhile Walker (1984,160-173.) defines “construction project management as the planning, control and co-ordination of a project from conception to completion (including commissioning) on behalf of a client”. It is important that the project manager should know how to plan, why planning and what information the plan should contain in the planning stage because careful planning is strongly associated with project success in order to meet project objectives. However, Oisen (1971,2(1), 12-14.) defines Project Management as “the application of a collection of tools and techniques by using Critical Path Method and Matrix Organization to utilize the resources in order to meet project needs within time, cost and quality”. A project manager must know how to manage these three elements in project such as how to estimate project cost by using the mathematical method to avoid the project over budget and to ensure the project activity keep track. In contrast the British Standard for Project management BS6079 (1996) indicates project management is the planning, monitoring and control of all aspects of a project and the motivation to fulfill project objectives and to manage project performance, similar with what the UK Association of Project Management (APM, 1995) defines project management is to achieve the project objectives safely within agreed time, cost and performance criteria. Project planning provides information about when the activities can start and finish, help the project manager to control and monitor the project activity when unexpected events occur. Besides that project planning also help the project manager and project team to identify which activities are critical and therefore it can decrease the probability of project delayed. Even though there are differences definition about Triple Constraints among the researcher, but almost of them states that these three elements still give an impact towards project performance and influence project success. In addition each of these elements relates with one to another, such as duration of the project relate with the cost, if the project was delayed so it will increase the cost automatically. 2.2.2 The role of Triple Constraint in Achieving Project Success Project Management can be summarized in a triangle that consists of three elements which are scope, time and cost. Constraints limit to the all project and this elements need to be identify as a critical part in handling project activity. PMI (2000) states that “Project Management is accomplishing through the use of the processes such as: initiating, planning, executing, controlling and closing”. It is because in every project stage these three elements relate with the triple constraint that influence project performance. It is essential that project leader and project team needs to balance its functionality, staffing budget, schedule and quality objective to satisfy their customer wants to avoid project delayed. Then, another resource by Soderlund (2004) he found that project management is seen to be the tool or method or technique to solve complex organizational problems. Project Management have a lots of techniques and approach that can used to monitor the project such as Critical Path Method (CPM) that used to estimate cost and time. Meanwhile, Program Evaluation and Review Technique (PERT) used to estimates of activity durations. This techniques help the project manager contribute to the achievement of projects, but it is not a guaranty that the project will be success. It means that the techniques just help in reducing project over budget, avoid project delayed and the project finish on time. It can conclude that Project Management stressed upon the successful accomplishment by concerns the triple constraints that consist of cost, time and quality in order to fulfill the project objectives and client wants. Besides that triple constraint also help the project manager to calculate or measure the risk that might occur in project activity by using mathematical method such as Critical Path Method and Pert Evaluation and Review Technique to monitor and controlling the project from being delayed or fail. 2.3 Project Success 2.3.1 Definition of Project Success In many years, Project Management has been discovered since the late 1960 to identify which factors lead to project success. According to Atkinson (1999,17(6), p337-42) and De Wit (1988,164-170 ) indicate that project success relate with theTriple Triangle of cost, time and quality. Almost all of project manager concerned these as the goals in order to meet project objective. Liu and Walker (1998,209-219) stated that the concept of project success can mean so much to so many different people because of varying perceptions and lead to disagreements about whether a project is successful or not. Shenhar et all (2002,5-9) agree with Liu and Walker that there is no conclusive evidence or common agreement that has been achieved so far to determine whether the project is a success or failure, because project success can be measured in many views and depends on their environment such as people involved in the project. Triple constraint need to be clear first, for example scope of the project clearly define, estimate the cost according to time duration of project and identify when the project should start and finish. According to Belout (1998,21-26) he stated that the attributes of project success is “in achieving the project objectives measured through the level of satisfaction expressed by the stakeholders”. Project manager should not limit the boundaries among the project team only, stakeholders also play role and influence the project performance. Stakeholders can be describe as project owner, contractor, Project Management organization, project champion and many others. Similar with what the PMI Guide (2000) states that to ensure project success, stakeholders should be identified and their needs and expectations are determined, influenced and managed. HoweverStuckenbruck (as cited in Atkinson, 1999) points out that project success depends on who asked the question and who decided on the criteria of project success and according to De Witt (1988,164-170) a project can be a success for one party and a failure for another. However Munns and Bjeirmi (1996,14(2),81-7)stated that “this ambiguity will continue to exist if distinction is not established between project success and project management success”. Project success is a long term target that need to achieve where the objective has been establish and permanent with continuous process,meanwhile project is a short term process and have a probability that scope of the project might be change along the project activity to deliver costumer needs. In conclusion, measuring project success is to wide and subjective, most of the researcher found that there are others factors that lead to project success other than triple constraint, because traditionally these three elements result in project success. Project success cannot determine with triple constraint only, it is also depend with the environment of the project. It is because even though the project leader and the team member apply one of the project management tools or approach but poor in managing, it can influence the end result of the project and at the end result will determine whether the project is success or vice versa. 2.3.2 Components of Project Success Project Success were influence by the internal and external factors, this is has been discovered by the previous studies where project can assume success if the project meet the : ·budget, ·fulfill the scope of the project and ·Complete the client specification. ·Project deliver on time However the success does not form based just on the judgment only. This statement was advocate by Pinto (1988,67-75) where he stated that “project success not only evolves from technically correct project but also effectively interfacing with clients and stakeholders”. This is similar with Belout (1998,21-26) found that project success attributes with level of stakeholders satisfaction in achieving project objectives. Besides that Lim and Mohamed (1999,243-248) stated they agree with “project success criteria differ according to different perspectives of the stakeholders”. Stakeholders can be describe as top management, project sponsor and client to the project that can effect decision making and have power in every stage of managing the project activity, because any changing of project scope need to inform with this group. Another source state that project team also can lead to the project success. Philips and Kevin (1996) stated that team management “lead to a better productivity of organization like increasing performance and profitability for the organization. Cooperation between team members will lead to the project aimed and make them focus on project activity. In conclusion there are many factors that influencing project success. Success in project was driven by whom, how and what that involves in the project itself. Team members of the project must identify what are the resource they need, who are their champion or ‘king’ in that project that need to be concern and how the team member and project manager complete the project on time within cost and scope. 2.4 Summary In conclusion, Project Management is the application of a collection of tools and techniques such as Critical Path Method, Project Evaluation and Review Technique (PERT) and Work Break down Structure that used to break the project activity into small and more detail to manage the project progress more systematic and smoother.The application of knowledge and skills in managing the project activity is important to allocate the resources, estimate the cost through the type of the project and to trade off the issue that occur along the project. This tools and application of knowledge accomplish to utilizing the resources within time, cost and scope that lead to project success. The application of these triple constraints give some benefits to the owner of project because these three elements can see the area where changes taking places and where modifications highly occur and controlling the project activity on track. The project manager and team member must trade off these three elements in the early stages of project to avoid misunderstood about the project scope that can delayed the project activity and increase the cost and to lead to unclear about the project goals andhave tendency lost of focus among the project team. However project success did not depends with one factor only, because project success is affected by its internal and external environment. Internal factor can be describe as project manager, team member, top management and the organization itself meanwhile external can be describe as the client,stakeholders, project sponsorship and or supplier. Project can assume as success if the project manager and team member meet their client specification within on time, cost and time. In addition project team member also influence project success because cooperation between team members will lead to the project aimed and make them focus on project activity. In contrast Lim and Mohamed (1999 17 (4), 243-248) stated “that stakeholders also attribute to the project success”. These groups can affect the decision making and have power to know every project activity and the progress of project must be report to them. Stakeholders can effect in the decision making because stakeholders is someone that provides resources such as give sponsor to the project to ensure the project activity still ongoing.
Reference Atkinson R, (1999). Project Management: Cost, Time And Quality, Two Best Guesses and a Phenomenon, Its Time to Accept Other Success Criteria, International Journal of Project Management, 17(6), p337-42
Kerzner H, (1995). Project Management: A systems approach to planning, scheduling and controlling. 5th ed. New York: Van Nostrand Reinhold, Oisen, RP,( 1971)Can project management be defined? Project Management Quarterly, Vol 2(1),pg12-14. Lim CS, Mohamed MZ,(1999).Criteria for project success: An Exploratory Reexamination.Int J Project Manage;17(4),p243–8. DeWitA,( 1988).Measurement of project management success. Int J Project Manage,6(3),pg164–70 Project Management Institute PMI(May 17, 2007) Sponsored Research Projects. Retrieved, from http://www.pmi.org/prod/groups/ public/documents/info/pp_sponsoredprojects.asp. Philips R.H and Kevin G.H, (1996).Managing Effectively Through Teams Vol2,pg 23-36 Liu A.M.M and Walker A,( 1998).Evaluation of Project Outcomes, Construction Management and Economics, 16, pp 209-219 Atkinson R,( 1999).Project Management: Cost, Time And Quality, Two Best Guesses and a Phenomenon, Its Time to Accept Other Success Criteria, International Journal of Project Management, 17(6), p337-42 BeloutA,( 1998). Effects of human Resource Management on Project Effectiveness and Success: Toward a New Conceptual Framework International, Vol
16, No.1, p21-26 Struckenbruck L,(Sep.1987)Who determines project success. Project management Institute Seminar/Symposiun Montreal Canada, pg 85-93 Munns A.K, Bjeirmi B.F, (1996).The Role of Project Management in Achieving Project Success, International Journal of Project Management,14(2), p81-7) Pinto, JK and Slevin, DP,( 1988, ). Critical success factors across the project lifecycle. Project Management Journal, Vol 19, Iss 3, pg67-75)
2.1 Introduction
This chapter reviews about the literature to establish what have been studies by the previous researcher to discuss about the topic of the research in order to make it clearer with the current issues. It discusses about relationship between project management and project success to the triple objectives of Time, Cost and Quality that influencing project performance. There are two sections in this chapter, where Section A discusses about Triple Constraint in Project Management meanwhile Section B discusses about Project Success.
2.2 Section A: Triple Constraint in Project Management
2.2.1 Definition of Triple Constraint
According to Kerzner (1989: 5th edition) claimed that “project management has been traditionally described as managing or controlling company resources on a given activity, within time, within cost and within performance”. These triple constraints define as the major factors that influencing to the project performance. Meanwhile Walker (1984,160-173.) defines “construction project management as the planning, control and co-ordination of a project from conception to completion (including commissioning) on behalf of a client”. It is important that the project manager should know how to plan, why planning and what information the plan should contain in the planning stage because careful planning is strongly associated with project success in order to meet project objectives. However, Oisen (1971,2(1), 12-14.) defines Project Management as “the application of a collection of tools and techniques by using Critical Path Method and Matrix Organization to utilize the resources in order to meet project needs within time, cost and quality”. A project manager must know how to manage these three elements in project such as how to estimate project cost by using the mathematical method to avoid the project over budget and to ensure the project activity keep track. In contrast the British Standard for Project management BS6079 (1996) indicates project management is the planning, monitoring and control of all aspects of a project and the motivation to fulfill project objectives and to manage project performance, similar with what the UK Association of Project Management (APM, 1995) defines project management is to achieve the project objectives safely within agreed time, cost and performance criteria. Project planning provides information about when the activities can start and finish, help the project manager to control and monitor the project activity when unexpected events occur. Besides that project planning also help the project manager and project team to identify which activities are critical and therefore it can decrease the probability of project delayed.
Even though there are differences definition about Triple Constraints among the researcher, but almost of them states that these three elements still give an impact towards project performance and influence project success. In addition each of these elements relates with one to another, such as duration of the project relate with the cost, if the project was delayed so it will increase the cost automatically.
2.2.2 The role of Triple Constraint in Achieving Project Success
Project Management can be summarized in a triangle that consists of three elements which are scope, time and cost. Constraints limit to the all project and this elements need to be identify as a critical part in handling project activity. PMI (2000) states that “Project Management is accomplishing through the use of the processes such as: initiating, planning, executing, controlling and closing”. It is because in every project stage these three elements relate with the triple constraint that influence project performance. It is essential that project leader and project team needs to balance its functionality, staffing budget, schedule and quality objective to satisfy their customer wants to avoid project delayed. Then, another resource by Soderlund (2004) he found that project management is seen to be the tool or method or technique to solve complex organizational problems. Project Management have a lots of techniques and approach that can used to monitor the project such as Critical Path Method (CPM) that used to estimate cost and time. Meanwhile, Program Evaluation and Review Technique (PERT) used to estimates of activity durations. This techniques help the project manager contribute to the achievement of projects, but it is not a guaranty that the project will be success. It means that the techniques just help in reducing project over budget, avoid project delayed and the project finish on time.
It can conclude that Project Management stressed upon the successful accomplishment by concerns the triple constraints that consist of cost, time and quality in order to fulfill the project objectives and client wants. Besides that triple constraint also help the project manager to calculate or measure the risk that might occur in project activity by using mathematical method such as Critical Path Method and Pert Evaluation and Review Technique to monitor and controlling the project from being delayed or fail.
2.3 Project Success
2.3.1 Definition of Project Success
In many years, Project Management has been discovered since the late 1960 to identify which factors lead to project success. According to Atkinson (1999,17(6), p337-42) and De Wit (1988,164-170 ) indicate that project success relate with the Triple Triangle of cost, time and quality. Almost all of project manager concerned these as the goals in order to meet project objective. Liu and Walker (1998,209-219) stated that the concept of project success can mean so much to so many different people because of varying perceptions and lead to disagreements about whether a project is successful or not. Shenhar et all (2002,5-9) agree with Liu and Walker that there is no conclusive evidence or common agreement that has been achieved so far to determine whether the project is a success or failure, because project success can be measured in many views and depends on their environment such as people involved in the project. Triple constraint need to be clear first, for example scope of the project clearly define, estimate the cost according to time duration of project and identify when the project should start and finish.
According to Belout (1998,21-26) he stated that the attributes of project success is “in achieving the project objectives measured through the level of satisfaction expressed by the stakeholders”. Project manager should not limit the boundaries among the project team only, stakeholders also play role and influence the project performance. Stakeholders can be describe as project owner, contractor, Project Management organization, project champion and many others. Similar with what the PMI Guide (2000) states that to ensure project success, stakeholders should be identified and their needs and expectations are determined, influenced and managed. However Stuckenbruck (as cited in Atkinson, 1999) points out that project success depends on who asked the question and who decided on the criteria of project success and according to De Witt (1988,164-170) a project can be a success for one party and a failure for another. However Munns and Bjeirmi (1996,14(2),81-7) stated that “this ambiguity will continue to exist if distinction is not established between project success and project management success”. Project success is a long term target that need to achieve where the objective has been establish and permanent with continuous process, meanwhile project is a short term process and have a probability that scope of the project might be change along the project activity to deliver costumer needs.
In conclusion, measuring project success is to wide and subjective, most of the researcher found that there are others factors that lead to project success other than triple constraint, because traditionally these three elements result in project success. Project success cannot determine with triple constraint only, it is also depend with the environment of the project. It is because even though the project leader and the team member apply one of the project management tools or approach but poor in managing, it can influence the end result of the project and at the end result will determine whether the project is success or vice versa.
2.3.2 Components of Project Success
Project Success were influence by the internal and external factors, this is has been discovered by the previous studies where project can assume success if the project meet the :
· budget,
· fulfill the scope of the project and
· Complete the client specification.
· Project deliver on time
However the success does not form based just on the judgment only. This statement was advocate by Pinto (1988,67-75) where he stated that “project success not only evolves from technically correct project but also effectively interfacing with clients and stakeholders”. This is similar with Belout (1998,21-26) found that project success attributes with level of stakeholders satisfaction in achieving project objectives. Besides that Lim and Mohamed (1999,243-248) stated they agree with “project success criteria differ according to different perspectives of the stakeholders”. Stakeholders can be describe as top management, project sponsor and client to the project that can effect decision making and have power in every stage of managing the project activity, because any changing of project scope need to inform with this group. Another source state that project team also can lead to the project success. Philips and Kevin (1996) stated that team management “lead to a better productivity of organization like increasing performance and profitability for the organization. Cooperation between team members will lead to the project aimed and make them focus on project activity.
In conclusion there are many factors that influencing project success. Success in project was driven by whom, how and what that involves in the project itself. Team members of the project must identify what are the resource they need, who are their champion or ‘king’ in that project that need to be concern and how the team member and project manager complete the project on time within cost and scope.
2.4 Summary
In conclusion, Project Management is the application of a collection of tools and techniques such as Critical Path Method, Project Evaluation and Review Technique (PERT) and Work Break down Structure that used to break the project activity into small and more detail to manage the project progress more systematic and smoother. The application of knowledge and skills in managing the project activity is important to allocate the resources, estimate the cost through the type of the project and to trade off the issue that occur along the project. This tools and application of knowledge accomplish to utilizing the resources within time, cost and scope that lead to project success. The application of these triple constraints give some benefits to the owner of project because these three elements can see the area where changes taking places and where modifications highly occur and controlling the project activity on track. The project manager and team member must trade off these three elements in the early stages of project to avoid misunderstood about the project scope that can delayed the project activity and increase the cost and to lead to unclear about the project goals and have tendency lost of focus among the project team.
However project success did not depends with one factor only, because project success is affected by its internal and external environment. Internal factor can be describe as project manager, team member, top management and the organization itself meanwhile external can be describe as the client, stakeholders, project sponsorship and or supplier. Project can assume as success if the project manager and team member meet their client specification within on time, cost and time. In addition project team member also influence project success because cooperation between team members will lead to the project aimed and make them focus on project activity. In contrast Lim and Mohamed (1999 17 (4), 243-248) stated “that stakeholders also attribute to the project success”. These groups can affect the decision making and have power to know every project activity and the progress of project must be report to them. Stakeholders can effect in the decision making because stakeholders is someone that provides resources such as give sponsor to the project to ensure the project activity still ongoing.
Reference
Atkinson R, (1999). Project Management: Cost, Time And Quality, Two Best Guesses and a Phenomenon, Its Time to Accept Other Success Criteria, International Journal of Project Management, 17(6), p337-42
Kerzner H, (1995). Project Management: A systems approach to planning, scheduling and
controlling. 5th ed. New York: Van Nostrand Reinhold,
Oisen, RP,( 1971) Can project management be defined? Project Management Quarterly,
Vol 2(1),pg12-14.
Lim CS, Mohamed MZ,(1999).Criteria for project success: An Exploratory Reexamination.Int J Project Manage;17(4),p243–8.
DeWit A,( 1988). Measurement of project management success. Int J Project Manage,6(3),pg164–70
Project Management Institute PMI(May 17, 2007) Sponsored Research Projects.
Retrieved, from http://www.pmi.org/prod/groups/
public/documents/info/pp_sponsoredprojects.asp.
Philips R.H and Kevin G.H, (1996).Managing Effectively Through Teams Vol 2,pg 23-36
Liu A.M.M and Walker A,( 1998).Evaluation of Project Outcomes, Construction Management and Economics, 16, pp 209-219
Atkinson R,( 1999).Project Management: Cost, Time And Quality, Two Best Guesses and a Phenomenon, Its Time to Accept Other Success Criteria, International Journal of Project Management, 17(6), p337-42
Belout A,( 1998). Effects of human Resource Management on Project Effectiveness and Success: Toward a New Conceptual Framework International, Vol
16, No.1, p21-26
Struckenbruck L,(Sep.1987)Who determines project success. Project management Institute Seminar/Symposiun Montreal Canada, pg 85-93
Munns A.K, Bjeirmi B.F, (1996).The Role of Project Management in Achieving Project Success, International Journal of Project Management,14(2), p81-7)
Pinto, JK and Slevin, DP,( 1988, ). Critical success factors across the project lifecycle. Project Management Journal, Vol 19, Iss 3, pg67-75)